*This is marketing

As a company that assembles electronics parts to create music players for consumers (MP3s, car audio systems etc.), eShock recently received word that one of its major suppliers of a central component was raising prices Shock faced several options: (1) take a hit on profits, (2) try to increase business with alternative suppliers, (3) raise prices The company didn't want to do #1, and #2 seemed daunting, so it wondered if its customers would tolerate a price hike, eShock ran a small-scale experiment in a local marketplace to see the demand fluctuations for a couple of different prices. In one market, eShock raised its price 10%, from $100. Last quarter, sales in the test market ran 2000 units. During the test quarter, with the price increase, units sold fell to 1500. 1- For most purchases, we expect demand to fall with an increase in price, but was this falloff acceptable? 2- Should eShock raise prices 10? Why or why not? Should it raise prices higher? Why or why not